Heinz

Heinz has pursued global growth via market penetration and product/market development achieved principally via acquisition.

strategic alliance As part of the alliance, Heinz was to provide procurement, manufacturing, and logistics expertise, with Hain providing marketing, sales, and distribution services.

Heinz has financed its acquisition strategy principally via debt (currently approximately $5.6 billion) resulting in a total debt to equity ratio of 3.63, twice the industry average.

Consolidation

the divestiture

businesses in hyperinflationary countries

Key competitors include Kraft, Unilever, Sara Lee, Campbell Soup Company and Dole Food Company, Inc.

Because Heinz draws almost 17% of its revenues from food service operations (restaurants, stadiums, airports, etc.), the company has suffered more than most processed food firms from the after effects of September 11.

The increased popularity of salsa and other ethnic condiments as well as the lower cost structures for private label brands will threaten Heinz’s market share.

Much of Heinz’s acquisition growth has been in the frozen food segment

Quality improvements and convenient packaging are driving much of the growth and promise to make these products still more attractive in